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James Hardie
James Hardie defies market expectations with its robust net profit forecast, but shareholder unrest continues over its AZEK acquisition.
(AI video summary)
This video was created on 8 October 2025 for IG audiences by ausbiz.
ASX code: JHX
James Hardie forecasts financial upside amid acquisition concerns
James Hardie has forecasted an adjusted net profit between US$100 million and US$156 million for the second quarter (Q2) of the financial year (FY), exceeding market estimates. Shares rose 8% in New York trading. The company also anticipates preliminary net sales of around US$1.3 billion for the September quarter. Its US$14 billion acquisition of AZEK remains on track, contributing mid-single-digit sales growth.
Despite this positive outlook, shareholder advisors recommend removing Chairwoman Anne Lloyd at the upcoming annual general meeting (AGM) to rebuild trust amid dissatisfaction with the AZEK acquisition. Concerns linger that James Hardie may have overpaid for AZEK, lacking shareholder approval and raising diversification worries.
Investment outlook
While James Hardie's core business remains strong, the macroeconomic climate may delay recovery. Analysts suggest a 'wait and see' approach as AZEK’s integration progresses. Some maintain a 'hold' stance but believe the stock could prove advantageous within a couple of years.
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